Budgets, Managerial Accounting

Assignment Help:

Budgets

An essential planning component is budgeting. Budgets sketch the financial plans for an organization. There are number of budget types.

Operating Budgets -- A plan should provide definition of the anticipated revenues and the expenses of an organization and more. These operating budgets can become quite detailed, to the level of mapping of specific inventory purchases, staffing plans, etc. The budgets, oftentimes, delineate permissible levels of expenditures for various departments.

Capital Budgets - Operating budgets will also reveal the requirement for capital expenditures relating to new services and equipment. This longer term expenditure decisions should be evaluated logically to that determines whether an investment can be justified and what rate and the duration of payback is likely to happen.

Financial Budgets -- A company should assess financing requirements, including the evaluation of potential cash shortages. These tools enable companies to meet with lenders and that demonstrate why and when additional support may be required.

The budget process is very much important doesn't matter how painful the process may seem it is important to the viability of an organization. Several of the succeeding chapters are dedicated to helping you better understand the nature and the elements of the sound budgeting.

 

 


Related Discussions:- Budgets

Debentures, 500 000 debentures are in a company at a coupon value of R50 ea...

500 000 debentures are in a company at a coupon value of R50 each in issue. During each financial year, interest on these debentures is paid in arrears and in equal quarterly inst

Inappropriate standards-implementation breakdown, Inappropriate standards (...

Inappropriate standards (or targets): This is a problem arising from deficiencies in planning. If not enough time and resources are devoted to setting accurate standards in th

cost per equivalent unit was determined , The Ragan Corporation uses a pro...

The Ragan Corporation uses a process cost system. The company started March with 2,300 units in Work in Process-Dept. A. During the month 4,000 units were started. At the end of th

Feed-forward control system, Feed-forward control system Feed-forward c...

Feed-forward control system Feed-forward control system describes a system in which deviations in the system are anticipated in a forecast of future results, so that corrective

Abc analysis-pareto analysis, ABC Analysis (Pareto Analysis) In ordinar...

ABC Analysis (Pareto Analysis) In ordinary parlance, ABC analysis can be best compared with our class society where the population is categorized into Top, Middle and Lower cla

Multiple products, differentiate between multiple product , selling cots an...

differentiate between multiple product , selling cots and margin management

Planning, Planning, Directing, and Controlling A clever sign hanging on...

Planning, Directing, and Controlling A clever sign hanging on the wall of a business establishment: "The Managers are paid to manage the work-- If There Were No Problems we wou

Illustration of short-term decisions, Illustration of short-term decisions ...

Illustration of short-term decisions These are, to a significant extent, determined by the excellence of the firm's long-term decisions. Illustration of short-term decisions in

Suppliers line of credit, In this scheme, non-revolving line of credit is e...

In this scheme, non-revolving line of credit is extended to the seller to be utilized inside a stipulated period. Assistance is provided to manufactures for promoting sale of their

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd